Like many other African countries, Somalia has decided to take advantage of technology to solve some of the problems it faces. The country has just adopted a national QR coding technology to improve financial inclusion and the local e-commerce segment by extension.

Somali citizens will soon be able to pay for goods and services in stores and supermarkets by scanning a quick response (QR) code using their mobile devices. On Tuesday, June 20, the Central Bank of Somalia (CBS) launched the standardized national QR code called "SOMQR". It aims to stimulate digital payments, which are offered by the various payment service providers in the country.

“SOMQR Code Standard will revolutionize the payment landscape in Somalia as a low-cost, scalable, secure, and interoperable solution towards a cashless society. [...] we are proud of achieving yet another major milestone in the digitalization process of the payment systems," said CBS governor Abdirahman Mohamed Abdullahi (photo). 

The launch of SOMQR is the latest in a series of reforms undertaken by CBS in recent years. It follows the launch, in August 2021, of the National Payment System (NPS), an interbank payment, clearing, and settlement system linking the Central Bank and the 13 licensed commercial banks. 

Also as part of its drive to modernize services, last March the CBS began enforcing the use of the International Bank Account Number (IBAN) to connect the country's financial institutions to the rest of the international banking services and facilitate the validation of their transactions.

The SOMQR is the latest addition to all these initiatives. As a fast, scalable, and secure low-cost payment platform, its effective implementation will revolutionize the payments landscape in Somalia. The standardized QR code will enable merchants to receive payments instantly, anytime, anywhere.

Samira Njoya